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RIP CHRISTOPHER HITCHENS, 1949-2011 - From Vanity Fair: “Christopher Hitchens—the incomparable critic, masterful rhetorician, fiery wit, and fearless bon vivant—died today at the age of 62. Hitchens was diagnosed with esophageal cancer in the spring of 2010, just after the publication of his memoir, Hitch-22, and began chemotherapy soon after. ... ‘My chief consolation in this year of living dyingly has been the presence of friends,’ he wrote in the June 2011 issue. He died in their presence, too, at the MD Anderson Cancer Center in Houston, Texas. May his 62 years of living, well, so livingly console the many of us who will miss him dearly.” http://vnty.fr/tAhvTa If you haven’t read Hitch-22, do so now. And everything else he ever wrote. http://amzn.to/uA6nEh

GOP DEBATE WRAP: ROMNEY BACK ON TOP - Mitt Romney had one of his strongest debates last night by ignoring the conventional wisdom (incorrectly espoused by M.M. among others) that he needed to attack Newt Gingrich directly. He didn’t. Others, especially Michele Bachmann and Rick Santorum, took care of that with some significant success. And Romney had already done his slashing in multiple interviews this week and in ads supportive of his campaign. Instead, the former Massachusetts governor made his closing case to Iowa voters that he is the sharpest general election candidate to take on President Obama on the critical issue of economic growth. He also did a fairly decent job framing himself as now firmly pro-life and anti-gay marriage while speaking of his race against Obama as inevitable.

And Romney’s line on Obama’s response to the downed drone—“a foreign policy based on pretty please”—was one his toughest to date. Polls show Iowa tightening and if Romney comes close (or shockingly wins) that would put him firmly back on top and poised to deliver the early knock-out blow that once seemed inevitable. Gingrich was not at the top of his game and suffered savage attacks on his work for Freddie Mac, against which he still does not have a decent answer (because there really isn’t one).

Bachmann was strong and Perry was better than usual (despite the cheesy Tebow line, not because of it). But it’s too late for either of them. Huntsman, who has risen somewhat in New Hampshire polls, did nothing to improve his standing last night and a joke he made about skipping the now-defunct Donald Trump debate fell painfully flat. ... Rep. Ron Paul, viewed as a dark-horse to win Iowa, was flat out booed for downplaying Iran’s nuclear program and suggesting sanctions should be lifted.

M.M.was initially surprised by Romney’s lack of focus on Gingrich early on and emailed Kevin Madden, Romney’s spokesman in 2008 and now EVP of Public Affairs at JFD Frontline, to ask what was going on. Madden suggested it was not the time for attacks on another Republican: “The most persuasive message right now for Repub voters is showing you have strongest case against Obama.”

GINGRICH CRASHES ON INTRADE - The former speaker who once hit nearly 40 percent likelihood of getting the GOP nomination has tanked to 18 percent. Romney has shot back up to 60.5 percent among investors betting on the site. http://bit.ly/sgGctW

SHOCK! NO SHUTDOWN - M.M. can’t resist saying we TOLD YOU SO regarding Congress heading home (probably by Saturday) without further disgusting the American public ... POLITICO’s David Rogers: “Capping a roller coaster week, House and Senate negotiators signed off Thursday night on a $1 trillion-plus, year-end spending bill, which the leadership expects to bring to the House floor as early as Friday to put to rest any threat of a government shutdown. The White House — held at arm’s length until now — won concessions including expanded transfer authority to address a funding shortfall at the [CFTC] ... And the final bill strips out a Republican amendment to the Treasury budget to reinstate Bush-era restrictions on travel to Cuba—something Obama strongly opposed.” http://bit.ly/rrO8QZ

PAYROLL TAX DEAL NEXT - POLITICO’s Manu Raju and Jake Sherman: “Congressional leaders ... are now considering a short-term extension of a payroll tax holiday and jobless benefits that would affect millions of Americans next year. ... But sticking points remained over how to pay for a year-long extension of a payroll tax holiday, jobless benefits and to avert a scheduled pay decrease for physicians serving Medicare patients. So negotiators are now actively considering a $40-billion, two-month extension on those measures.

“A two-month extension would ‘make sure people continue to get their ... payroll tax holiday and also the unemployment benefits and also doctors would be able to continue to do their work on Medicare patients ... A senior administration official said short-term extension would meet Obama’s principle that taxes don’t go up on the middle class, but they were withholding a fuller analysis until they saw a bill. ... Reid also filed a procedural motion to cut off debate on the House-passed payroll bill, setting up a vote as late as Saturday morning. The bill could be used as the vehicle for a final year-end deal, sources say.” http://bit.ly/tIjAE8

ERIC DASH LEAVING NYT - Eric “P-Flash” Dash, M.M.’s friend and former N.Y. Times colleague and the pride of Pittsburgh, is moving on from the Grey Lady. From the note Dash will send to colleagues: “Friends, I wanted to let you know that after eight years at The New York Times, I am leaving the newspaper. I’ve had an amazing run covering the banks and the financial crisis, but I am now looking forward to a new challenge. It’s been an extraordinary privilege to work for The Times, and to have been on such an important beat at such an important moment.

“I’ve also been fortunate to have such a rich experience so early in my professional life. That’s why I’m convinced that now is the right time for me to take a risk and try something entirely different. I am excited about what lies ahead for me as I move into the next phase of my career, and I plan to take some time to explore. But I do hope that we will stay in touch.”

IT’S UP TO EUROPE NOW - Yesterday’s dip to 366K initial unemployment claims underscores other solid evidence suggesting the U.S. recovery is gaining traction heading into the election year and that Europe is now the biggest risk to U.S. growth and Obama’s re-election chances. ... Harris Private Bank’s Jack Ablin emails: “Philly Fed was released this morning and while it’s off a little, it’s still pretty strong. It continues to imply non-farm payroll growth in excess of 200,000. That, combined with strong claims data, suggests a U.S. disconnect from Europe.”

GOOD FRIDAY MORNING - M.M. will be back on “NOW with Alex Wagner” on MSNBC for the noon hour. Live Tweet us during the show @morningmoneyben

** A message from the Investment Company Institute: Money market funds work for the economy and for all Americans. Their $2.6 trillion finances jobs, communities, and consumers. Investors and the economy alike depend upon their stable $1.00 value. Businesses, governments, and nonprofits are working to preserve money market funds. Visit www.preservemoneymarketfunds.org. **

DRIVING THE DAY - Omnibus spending deal expected to pass the House while negotiators discuss whether they can get a payroll tax cut extension deal that lasts more than two months ... Economists say it would be much better to do a full-year payroll tax cut extension because it’s not helpful to all-important consumer confidence and retail sales to have folks worried (at Christmas/Hanukkah time to boot) that their paychecks might soon be getting smaller. ... House OGR subcommittee at 9:30 a.m. has the second part of its hearing on the European debt crisis with testimony from Fed and Treasury officials ... Senate Finance will vote on some nominations including Mary John Miller to be an Under Secretary of the Treasury for Domestic Finance and Alastair M. Fitzpayne to be a Deputy Under Secretary of the Treasury for Legislative Affairs. ... CPI is the only big data point and it’s not expected to show any change.

TV WATCH - Jim Millstein, formerly chief restructuring officer at Treasury and now head of Millstein & Co., will be in-studio on Bloomberg TV's “InsideTrack” with Erik Schatzker at 7:15 a.m. to talk European banks.

HOLIDAY GREETINGS FROM CARLYLE - Per DealBook’s Kevin Roose: “Attention private equity firms: The Carlyle Group just raised the bar on holiday cards. ... [T]he private equity firm produced a comedic mockumentary called “Holiday Founders’ Video,” which it will send to its investors on Friday. The video stars David M. Rubenstein, William E. Conway Jr. and Daniel A. D’Aniello, the firm’s co-founders, in what amounts to a year-end alternative reality exercise. Video: http://nyti.ms/sf6lzx

COMING NEXT WEEK: FRANCHISE FORECAST - Per release: “On Monday, the International Franchise Association (IFA) will release The Franchise Business Economic Outlook: 2012, to forecast growth in the number of establishments, employment, output and contributions to U.S. gross domestic product (GDP) in 2012 ... IFA’s will also unveil the results of its Annual Franchise Business Leader Survey.” Conference call details on Monday.

DRIVING THE WEEKEND: CHEAP PRICES! - NYT’s Stephanie Clifford on pg. A1: “When is the final Saturday before Christmas? Don’t bother consulting a calendar if you’re shopping at Macy’s, Sears or J. C. Penney. They’ve moved it forward a week. A sharp drop in shopping since Thanksgiving weekend has prompted worried retailers to slash prices, extend specials, stay open later — and rewrite the calendar. Usually one of the most heavily discounted shopping days of the year, the Saturday before Christmas — it falls on Dec. 24 this year — is too crucial to retailers’ holiday sales to be left in the hands of procrastinating Christmas Eve shoppers. Instead, many of the promotions pegged to ‘Super Saturday,’ as the day is known in the retail industry, are now scheduled for this Saturday — a full eight days before Christmas.” http://nyti.ms/rEtI1c

DARK CLOUDS: LAGARDE WARNS ON DEPRESSION - FT’s Hugh Carnegy in Paris, George Parker in London and Peter Spiegel in Brussels in the page 1 splash: “The managing director of the International Monetary Fund has warned that the global economy faces the prospect of ‘economic retraction, rising protectionism, isolation and . . . what happened in the 30s [Depression]’ ... ‘There is no economy in the world, whether low-income countries, emerging markets, middle-income countries or super-advanced economies that will be immune to the crisis that we see not only unfolding but escalating,’ Christine Lagarde said in a speech at the US state department in Washington.

“‘It is not a crisis that will be resolved by one group of countries taking action. It is going to be hopefully resolved by all countries ... She was speaking after the governor of France’s central bank, in an attack on the ‘incomprehensible and irrational nature’ of credit rating agencies, also angered London officials by suggesting the agencies should target the UK’s rating rather than France’s.” http://on.ft.com/unKvQI

GINGRICH SINGED - POLITICO’s Alexander Burns: “Gingrich appeared to get the rougher end of the bargain, finding himself on the defensive from the very first question. The former House speaker vehemently denied charges that he made a fortune in lobbying, betrayed conservatives as a leader in Congress and lacks the temperament to be president. ... Accused by both Rick Santorum and Michele Bachmann of being unfriendly to core conservative voters, Gingrich urged voters to look at his record. ... Attacked for having once suggested he’d support Republicans who support some abortion rights, Gingrich shot back: ‘I said I wasn’t gonna go out and purge Republicans.’” http://bit.ly/rTyzqS

ROMNEY TAKES HIGH ROAD/PAUL FALTERS - WSJ’s Jonathan Weisman and Sara Murray: “After attacking Mr. Gingrich for the past few days, Mr. Romney toned it down. ‘The American people care very deeply about having a president who will get America right again,’ he said. ‘I'll have credibility on the economy when [President Obama] doesn't.’ ... The Thursday debate may end up blunting Mr. Paul's charge due to an extended exchange over Iran's nuclear ambitions. Mr. Paul, an ardent libertarian, warned the drum beat for military action against Iran threatened to push the United States into a quagmire ... That triggered sharp responses from his rivals, who echoed conservative public opinion. Ms. Bachmann said she has ‘never heard a more dangerous answer on foreign policy.” http://on.wsj.com/uDHcGc

GETTING RICH IN CONGRESS - Reuters/Breaking Views’ Daniel Indiviglio: “A fuel subsidy proposal, if passed, would enrich Representative Nancy Pelosi because of her stake in a ‘green’ firm that stands to benefit. ... The Democrat’s asset disclosure indicates she owns as much as $100,000 of Clean Energy stock. And earlier this year, she listed the NATGAS Act as one of the priorities for her ‘Make It In America’ agenda. ... But the problem goes even deeper, as evidenced by the NATGAS Act. Pelosi wouldn’t be guilty of insider trading. Her influence as a lawmaker would merely help her profit. Getting rid of such undue perks should be the kind of agenda item that could unite far-reaching constituencies, from members of the Tea Party to those Occupying Wall Street.” http://bit.ly/sxPCO8

TRANSITIONS: SAMUELSON TO NEUBERGER BERMAN - Alex Samuelson emails that he is leaving JP Morgan Treasury Services and joining Neuberger Berman as head of media relations.

CFBP PUSH BACK, TAKE THREE - At some point we will cease the back-and-forth between opponents and foes of the CFBP. But the people engaging in are too much fun and too smart to stop yet. Latest edition comes from the opposition side (and again, from someone who took part in the legislative process that created the agency): “It’s not surprising that someone at the ‘creation of the concept’ feels up to the task of second guessing the American people. Perhaps if such people had spent less time sitting ‘at the table’ focused on trivial things like the Bureau's name and politics and more digging into what actually happened, the American people would have faith in their work. But they did not and so the American people do not.

“There is an appropriate role for government: we need cops in our marketplaces as much as on our streets. That has not been in dispute. What is subject to debate is whether this CFPB or this law was the best way to proceed. That question was not settled the day the law passed - it will be considered by those struggling to start businesses, find jobs, and grow the economy everyday thereafter. Those who supported this law, however, do not want to hear from these people because they know best and any further discussions, in their own words, amount to beating a dead horse.”

NUCLEAR OPTION REACT - Public Citizen’s David Arkush emails: “There would be nothing ‘nuclear’ about a Cordray recess appointment. That’s bank-lobbyist framing. The House has no authority to hold the Senate open unless the President consents. Also, the House also has no business meddling in the Cordray nomination in the first place. Under the Constitution, nominations are the business of the president and the Senate. So it’s the House that’s out of bounds.”

TOP VIDEO - Jon Corzine being served with lawsuit papers (dropped on the ground and scooped up by an aide) during a break in his testimony. http://bit.ly/sbgQ0Y

ALSO FOR YOUR RADAR -

IMMIGRATION AND JOBS - Panelists at an event hosted by AEI and Partnership for a New American Economy yesterday discussed a new study showing the impact immigration reform has on the economy and job creation. Rep. Tim Griffin also spoke at the event and shared details about his bill “Bringing & Retaining Accomplished Innovators for our Nation.” Report: http://bit.ly/t8TvmN

PEW STUDY CONNECTS HOUSING AND EDUCATION - Pew’s Economic Mobility Project has a new study out this morning: “Housing Wealth and Higher Education: Building a Foundation for Economic Mobility.” The study uses a model to assess how changes in housing wealth during the recent boom and bust affected students’ higher education decisions. Key findings include: The wealth generated by rising home values during the 2001-2005 boom is estimated to have increased college enrollment rates among students from low- and middle-income families by 24 percent.” http://bit.ly/uslnd6

CORZINE DEFENDS MONEY TRANSFER - WSJ’s Aaron Lucchetti and Scott Patterson on pg. C1: “Former MF Global Holdings Ltd. Chief Executive Jon S. Corzine testified Thursday that he knew about an overseas transfer of funds that has come into focus in recent days as regulators and Congress seek to find out what became of an estimated $1.2 billion in missing customer cash. Mr. Corzine testified, however, that he received assurances that the transfer of millions of dollars to a J.P. Morgan Chase & Co. account in London on Oct. 28, the last business day before MF Global filed for bankruptcy, was approved by at least one official in MF's back office. ... The firm's primary regulator at the exchange level, CME Group Inc., has suggested Mr. Corzine knew about certain transfers of funds that may have been improper.” http://on.wsj.com/tWymIq

MORGAN STANLEY TO LAY OFF 1,600 - FT’s Shahien Nasiripour and Shannon Bond: “Morgan Stanley is to eliminate 1,600 jobs as the bank readjusts its workforce in response to new capital requirements, restrictions on trading and a sluggish global economy. The cuts, which will begin next year, amount to nearly 3 per cent of its global personnel and will be spread across the company ... Financial advisers will be spared but units in the company’s fixed-income division are likely to suffer a higher proportion of the lay-offs as Morgan Stanley sheds assets that require it to hold more capital. News of the job cuts come as banks in Europe and the US pare back their operations and shed assets as developed economies struggle to grow after the financial crisis and banks face heightened regulatory requirements that are likely to make them smaller.” http://on.ft.com/sm2dkk

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RIP CHRISTOPHER HITCHENS, 1949-2011 - From Vanity Fair: “Christopher Hitchens—the incomparable critic, masterful rhetorician, fiery wit, and fearless bon vivant—died today at the age of 62. Hitchens was diagnosed with esophageal cancer in the spring of 2010, just after the publication of his memoir, Hitch-22, and began chemotherapy soon after. ... ‘My chief consolation in this year of living dyingly has been the presence of friends,’ he wrote in the June 2011 issue. He died in their presence, too, at the MD Anderson Cancer Center in Houston, Texas. May his 62 years of living, well, so livingly console the many of us who will miss him dearly.” http://vnty.fr/tAhvTa If you haven’t read Hitch-22, do so now. And everything else he ever wrote. http://amzn.to/uA6nEh